How Innovative Capital Structures Are Making Underserved Businesses Bankable

Sandesha Global Ventures’ Managing Partner, Dr. Seshadri Vaidyanath Iyer, is reshaping the financial landscape for the world’s small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs). Sandesha Global Ventures LLP is a Mumbai-based boutique investment banking advisory firm specializing in global project curation aligned with Sustainable Development Goals (SDGs) and Environmental Social Governance (ESG) frameworks. The company focuses on facilitating sustainable growth in key sectors such as Climate Change, Healthcare, Education, Public Infrastructure, BFSI, and Technology, typically working on projects valued at $5 million worldwide.

At the heart of his approach: transforming capital from a blunt instrument into a precision tool, by embedding Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) standards directly into the design of financial products. In his hands, “impact” is measurable, trackable, and fundamentally bankable.

The Funding Gap Problem

SMEs and MSMEs are the lifeblood of local economies—creating jobs, building resilience, and driving innovation. Yet, they are chronically underfunded. The usual culprits: limited collateral, volatile cash flows, and opaque risks. While traditional lenders see warning signs, he sees untapped potential and mispriced risk. By leveraging real-world, operational data, he ties the cost of capital to the actual improvements business owners can deliver, not just their credit histories. This approach empowers both the lender and the founder, aligning financial returns with social and environmental progress.

SDG and ESG as Deal Architecture

In Sandesha Global Ventures’ model, SDG and ESG criteria are not afterthoughts—they form the very blueprint of the transaction.

• SDG mapping: Each company’s business model is mapped to specific SDGs—such as water reuse, clean energy, or decent work—then translated into quarterly milestones that align with existing business metrics.
• ESG discipline: Key aspects like governance, supply chain ethics, worker well-being, and safety are embedded as operational routines. The result: measurable improvements in productivity, retention, and reliability.

Tools That Reward Progress, Not Perfection

Sandesha Global Ventures’ financial structures are designed to be intuitive for founders, transparent for investors, and robust against manipulation.

• Impact-linked loans: Lower interest rates are triggered when businesses meet verified sustainability and safety targets.
• Revenue-based finance: Repayments flex with monthly revenues, helping businesses manage cash flow through seasonal ups and downs.
• Supply-chain anchored capital: Financing is tied to ESG-compliant procurement, creating immediate incentives for better practices.
• Blended capital stacks: First-loss guarantees attract commercial lenders once SDG/ESG metrics have de-risked execution.
• Performance insurance: Parametric products cover key risks like weather or outages, stabilizing fragile margins.

Measurement Investors Trust, Founders Can Use

Effective measurement is the bridge between intent and impact. Sandesha Global Venture emphasizes streamlined data collection and actionable insights.

• Few material KPIs: 4–6 critical metrics per deal, such as kWh saved or injury-free days, directly tied to costs or revenues.
• Digital MRV: Smart meters and geotagged audits provide time-stamped, tamper- proof evidence, cutting disputes and underwriting delays.
• Board-ready dashboards: Visual summaries (green/amber/red) keep all stakeholders aligned on impact and course corrections.

Why This Closes the Gap

With capital and impact incentives aligned, everyone wins, creating a Win-Win approach has been part of Dr.Iyer’s strategy for the last 25 years and this has transcended within

Sandesha Global Ventures, which he manages currently:

• Risk drops: Operational discipline reduces defaults.
• Return improves: Efficiency gains fund repayments organically.
• Access expands: Verified ESG performance attracts new buyers and financing.
• Trust compounds: Transparent rules turn success into scalable programs.

The Road Ahead

His core belief is pragmatic: embed impact into financial flows, and capital will follow. Under his leadership at Sandesha Global Ventures, SDG and ESG principles become practical financial technologies—tools that de-risk lending, reward responsible operators, and unlock sustainable growth for the enterprises that power our economies.